Republicans passed a budget that could result in cuts to Medicaid—the largest public health insurance program in the US

 By Natalia Marques 

In order to pay for the drastic losses to the national budget due to new tax cuts for the ultra-wealthy, the new House budget resolution could entail major cuts to public health insurance

On Tuesday, February 25, Republicans in the House of Representatives narrowly passed a budget resolution that would extend Trump’s 2017 tax cuts for the ultra-wealthy and implement new tax cuts, costing the government USD 4.1 trillion. 

These cuts will allow the highest income brackets to pay less in taxes, often contributing far less of their income than those at the lowest income brackets. Tax cuts to the wealthy serve to deprive the government of tax revenue it would have otherwise received from the highest income brackets—which could otherwise go to funding government programs that millions rely on. In order to pay for these tax cuts, the House Republicans’ resolution calls for reducing federal spending by USD 2 trillion over the course of a decade. As one of the largest sources of government spending, Medicaid, the biggest public insurance program in the US, is a likely target for cuts.

What is Medicaid?

Medicaid provides health insurance to tens of millions of low-income children and adults. Although it is a federal program, it is partially funded by and mostly managed by state governments, which hold a large amount of decision-making power over who is eligible to receive coverage. Medicaid benefits include coverage for nursing home care, personal care, and assistance with premiums and other health related costs.

Over 70 million people in the US are covered by Medicaid, constituting over one-fifth of the population. Medicaid covers 40% of all births in the US, and covers 40% of all children and 60% of all nursing home residents. Medicaid has existed for over 60 years, but its scope of coverage has increased in particular in the last 15 years after millions joined following the expansion of the Affordable Care Act to cover adults who earn less than 138% of the federal poverty line, under the Obama administration.

Workers fight back against potential health insurance cuts

According to April Verrett, president of the Service Employees International Union (SEIU), one of the largest unions in North America, the Republic budget resolution “puts our nation on a disastrous path of ripping away healthcare for 80 million children, pregnant women, veterans, seniors and people with disabilities by gutting Medicaid.”

Verrett urged in a statement, “There is still time to turn back from this disastrous path and we will not let today’s vote stop us from our fight to save Medicaid and the other federal services. We will hold elected officials accountable for their votes and demand that they support working peoples’ priorities and the wages, healthcare, and security we all deserve.”

Workers organized with SEIU and other unions have been leading efforts against potential Medicaid cuts. Healthcare workers from across California, organized with SEIU United Healthcare Workers West, traveled to Washington, DC in early February to put pressure on congressional representatives Young Kim, David Valadao, and Ken Calvert to vote against the budget resolution. All three Republicans ultimately voted in favor of the resolution. Parts of California have some of the highest rates of Medicaid enrollment, called Medi-Cal within the state, with two thirds of the population of Valadao’s 22nd congressional district region being covered under the program.

“Voting for Medi-Cal cuts means hospitals WILL close and our community WILL suffer,” said SEIU-UHW nursing aide Josephine Rios. “This is not a Democrat or Republican issue. This is about saving lives and keeping hospitals open.”

Across New York State, unionized workers have been attempting to fight these budget cuts directly at the doorsteps of Republican congressmembers. On January 8, members of SEIU Local 1199, representing 400,000 healthcare workers, joined other activists to rally outside the offices of three congressional Republicans: Nick LaLota, Mike Lawler, and Andrew Garbarino.

“I’m out here today in the freezing cold because so many of our seniors depend on Medicaid, but I’m worried about the program’s future,” said union member and nursing home worker Sheike Ward-Kidd outside of LaLota’s office in Hauppage, Long Island. “Where would my residents go if extremist politicians slashed the program to pay for huge tax cuts for their billionaire donors? Not only would my residents lose access to their healthcare, their medicine, their meals, their activities, their friends and their caregivers, but they would lose the only home they now have if the extremists have their way.”